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An Insight into the US Digital Advertising Market 

  • February 2016
  • -
  • Frost & Sullivan
  • -
  • 14 pages

An Insight into the US Digital Advertising Market : From Single Channel to Cross Channel Advertising

Introduction and Overview

This Frost & Sullivan market insight presents an analysis of the US digital advertising market. Specifically, this insight outlines the key trends in the US digital advertising market and presents an overview of the key capabilities required to deliver comprehensive and unified cross-channel advertising solutions. Throughout this insight, the terms advertising and ad are used interchangeably.

The Digital Advertising Landscape

According to the Interactive Advertising Bureau (IAB), the following are key highlights of the US digital advertising market:

- Internet advertising revenues in the United States totaled $ billion in the second quarter (Q2) 2015, an increase of % from the first quarter (Q1) 2015 total of $ billion and an increase of % from the Q2 2014 total of $ billion. Year-to-date revenues through June 2015 totaled $ billion, up % from the $ billion reported in 2014.

- Q2 2015 was the highest quarter on record, with the % year-over-year growth besting the 10-year compound annual growth rate (CAGR) of % from 2006 to 2015.

- Social advertising in the United States totaled $ billion during half year (HY) 2015, up from $ billion in the first months of 2014. According to the IAB, search continued to lead ad formats, while mobile continued its steady growth.

- Non-mobile search accounted for $ billion ( % of total) of Q2 2015 revenues, compared with $ billion ( % of total) in Q2 2014. Inclusive of mobile-related search revenue, the search format totaled $ billion ( % of total) in Q2 2015 revenues.

- Non-mobile display-related advertising accounted for $ billion or 24% of total revenues during Q2 2015, up % from the $ billion ( % of total) reported in Q2 2014. Q2 2015 display-related advertising includes banner ads ( % of revenues or $ billion), digital video ( % or $ billion), rich media ( % or $ million), and sponsorship ( % or $ million). Inclusive of mobile-related display revenue, the display-related format totaled $ billion ( % of total) in Q2 2015 revenues.

- Mobile revenues increased % from the $ billion ( % of total) reported in Q2 2014 to $ billion ( % of total) in Q2 2015. Mobile revenues consisted of mobile search ($ billion); mobile display, including banner ads, digital video, digital audio, sponsorships, and rich media advertising served to mobile devices ($ billion); and mobile other ($ million).

- Non-mobile classifieds revenues totaled $ million or % of Q2 2015 revenues, up % from the $ million ( % of total) reported in Q2 2014.

- Non-mobile lead generation revenues accounted for % of Q2 2015 revenues, or $ million, down slightly from the $ million ( % of total) reported in Q2 2014.

Table Of Contents

An Insight into the US Digital Advertising Market 
Introduction and Overview 3
The Digital Advertising Landscape 3
Key Trends in the US Digital Advertising Market4
Continued Push towards Integrated Ad Solutions4
Programmatic and Automation5
Cross-channel Advertising6
Smart Data and Events-driven Marketing 9
Native Advertising9
Social Advertising 10
The Final Word12
Legal Disclaimer13

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